Hold on. Put those pitchforks down first. Thanks to Karlo for bringing this up. But let’s look into this more deeply.
There is currently a proposed memorandum (dated December 22, 2008 ) by the National Telecommunications Commission which seeks to regulate the use of telecommunications utilities and services by imposing a fee on its myriad applications. My dear friends, if we read the guidelines closely, they don’t only seek to regulate bloggers — their intent is to regulate the Internet itself.
Take a look at some excerpts.
NOW, THEREFORE, pursuant to RA7925, Executive Order (EO) No. 546 series of 1979, and in order to encourage and facilitate the development of contents and the provision thereof to the consumers, the National Telecommunications Commission (Commission) hereby promulgates the following guidelines:
A. DEFINITIONS
1. The following terms as used in this Circular shall have the following definitions:
a. Content – refers to all types of contents delivered to/accessed by the users/subscribers such as music, ring tones, logos, video clips, etc.
b. Information – refers to all types of information delivered to/accessed by the users/subscribers, e.g. road traffic information, financial information, visa application information, etc.
c. Application – refers to all types of applications delivered to/accessed by the users/subscribers, e.g. mobile banking, electronic payments, point of sale service, etc.
d. Electronic Game – refers to games played online except gambling.
e. Contents Providers – are persons or entities offering and providing contents to the public for compensation through the networks, systems and/or facilities of authorized networks, systems and/or facilities providers.
f. Information Providers – are persons or entities offering and providing information to the public for compensation through the networks, systems and/or facilities of authorized networks, systems and/or facilities providers.
g. Applications Providers – are persons or entities offering and providing applications to the public for compensation through the networks, systems and/or facilities of authorized networks, systems and/or facilities providers.
h. Electronic Games Providers – are persons or entities offering and providing electronic games to the public for compensation through the networks, systems and/or facilities of authorized networks, systems and/or facilities providers.
i. Contents Developers – are persons or entities creating contents.
j. Information Sources – are persons or entities providing information to Information Providers.
k. Applications Developer – are persons or entities creating applications.
l. Electronic Games Developer – are persons or entities creating electronic games.
B REGISTRATION
1. Contents, Information, Applications and/or Electronic Games Providers, Contents Developers, Information Sources, Applications Developers, and Electronic Games Developers are required to have commercial presence in the country and shall secure Certificate of Registration (COR) from the Commission.
2. There shall be no nationality requirement for contents, information, applications and/or electronic games providers, contents, applications and/or electronic games developers and information sources.
3. The application for registration shall be filed and acted upon by the Commission not later than seven (7) working days from date of application.
4. The application shall include the following documents:
a. Valid registration from the Securities and Exchange Commission or from the Department of Trade and Industry and Articles of Incorporation;
b. Facilities lease agreement with duly enfranchised and certificated public telecommunications entity; and
5. The Certificate of Registration shall be valid for a maximum period of five (5) years. Applicants for registration may opt to apply for shorter period not shorter than one (1) year. Certificates of Registration shall be renewable.
D FEES AND CHARGES
1. The following fees and charges shall be imposed:
a. Filing Fee : PhP 300.00
b. Annual Registration Fee: 6,000.00
c. Surcharge for late : 50% of the annual registration fee if application filing of application is filed within six (6) months from date of expiry for renewal 100% if filed after six (6) months from date of expiry
Hold on. So I am now required to register myself as a commercial entity and pay the NTC a fee for blogging? Look at what it says again, now with emphasis:
Contents, Information, Applications and/or Electronic Games Providers, Contents Developers, Information Sources, Applications Developers, and Electronic Games Developers are required to have commercial presence in the country and shall secure Certificate of Registration (COR) from the Commission.
How about my students posting YouTube videos, keeping Multiply blogs, sending e-mail, submitting projects online — they have to register too? Why should we register as commercial entities if we don’t even earn from our online activities?
I understand that that sounds like a ridiculous notion. The memorandum may not say that directly, but the guidelines are so poorly worded that they will end up saying everything and meaning nothing. If I truly want to be an alarmist, we can interpret the law as not just registration fees for every blogger, but a charge for every instant message you send, credits for your first hundred e-mails, and so on.
That leads to my next criticism — implementation. How can they regulate something as amorphous as the Internet?
This proposed memorandum is pursuant of the older Republic Act 7925 or AN ACT TO PROMOTE AND GOVERN THE DEVELOPMENT OF PHILIPPINE TELECOMMUNICATIONS AND THE DELIVERY OF PUBLIC TELECOMMUNICATIONS SERVICES.
It was approved and put into law March 1, 1995. A good three or four years before the Internet became so widespread in the Philippines.
Reading the Republic Act, I detect that its paradigm simply does not match the reality we have now. Its policy objectives had more to do with the creation, distribution, and facilitation of a telecommunications market in the country. Take a look.
(a) A fundamental objective of government is to develop and maintain a viable, efficient, reliable and universal telecommunication infrastructure using the best available and affordable technologies, as a vital tool to nation building and development;
(b) The expansion of the telecommunications network shall give priority to improving and extending basic services to areas not yet served. For this purpose, government shall promote a fair, efficient and responsive market to stimulate the growth and development of the telecommunications facilities and services, with emphasis on the accessibility by persons to basic services in unserved and underserved areas at affordable rates;
(c) The radio frequency spectrum is a scarce public resource that shall be administered in the public interest and in accordance with international agreements and conventions to which the Philippines is a party and granted to the best qualified. The government shall allocate the spectrum to service providers who will use it efficiently and effectively to meet public demand for telecommunications service and may avail of new and cost effective technologies in the use of methods for its utilization;
(d) Rates and tariff charges shall be fair, just and reasonable and for this purpose, the regulatory body shall develop tariff structures based on socioeconomic factors and on financial, technical and commercial criteria as measures to ensure a fair rate of return and as a tool to ensure economic and social development;
(e) Public telecommunications services shall be provided by private enterprises. The private sector shall be the engine of rapid and efficient growth in the telecommunications industry;
(f) A healthy competitive environment shall be fostered, one in which telecommunications carriers are free to make business decisions and to interact with one another in providing telecommunications services, with the end in view of encouraging their financial viability while maintaining affordable rates;
(g) A fair and reasonable interconnection of facilities of authorized public network operators and other providers of telecommunications services is necessary in order to achieve a viable, efficient, reliable and universal telecommunications services;
(h) The government shall give all the assistance and encouragement to Philippine international carriers in order to establish interconnection with other countries so as to provide access to international communications highways on a competitive basis;
(i) For efficiency, practicability, and convenience, but with due regard to the observance of due process at all times, regulation of telecommunications entities shall rely principally on an administrative process that is stable, transparent and fair, giving due emphasis to technical, legal, economic and financial considerations;
(j) No single franchise shall authorize an entity to engage in both telecommunications and broadcasting, either through the airwaves or by cable;
(k) Ownership of public telecommunications entities to as wide a number of people as possible, preferably to its customers, in order to encourage efficiency and public accountability and to tap personal savings shall be encouraged;
(l) The development of a domestic telecommunications manufacturing industry to meet the needs of the Philippines and to take advantage of export opportunities shall be promoted without preventing, deterring or hampering the goal of full universal service; and
(m) Human resources skills and capabilities must be harnessed and improved to sustain the growth and the development of telecommunications under a fast changing telecommunications environment.
In many ways, we can say that this law helped create the Internet in the Philippines. Not too long after 1995, PLDT embarked on its Zero Backlog program to install telephone lines and fibre optic cables. As far as policy goes, RA 7925 was what we needed in 1995.
It’s 2009 now. This proposed memorandum by the NTC is a poor application of RA 7925. Its proposed mechanisms do not correspond to the act’s stated policies of enhancing the delivery of telecommunication services.
There is some argument to be made for the regulation of the Internet provided that the resources are scarce, but that is hardly the case. Lines are getting faster, bandwidths are getting wider, and applications are becoming more diverse.
Moreover, now there is hardly any line between a consumer of information and a producer of information — that’s the essence of ‘Web 2.0′. The proposed memorandum relies on a 1995 paradigm where there still exists a separation between the two. It will be impossible to work with the definitions they have currently stated if ever they bring this memo to effect. Hence, imposing this as a law won’t just be impossible; it would be ridiculous.
Furthermore, the proposed guidelines apply to today’s consumers what held true to 1995′s service providers. There is a clear mismatch here for RA 7925 explicitly refers to the establishment of a utilities infrastructure while the present guidelines transcend that mandate into regulating its very use. Again, there would have been no mismatch if the realities were different. The Internet is not diminished in its use; it is enriched.
So perhaps, it is this value which they wish to capitalize on. If that’s the purpose — and increasingly it is seemingly so — then they’re going about it the wrong way. For to regulate Internet behavior across the board based on loose definitions of “content providers” has the real danger of stifling creativity across the board, and that will ultimately kill value.
My suggestion for the NTC is to look the other way — encourage the use of the Internet and provide platforms for people to develop their ideas into their own businesses. Then that you can have registered and taxed. I see that this is what they intend to do in most of the memo; I just need greater clarity in the other parts of it.
At worst, if this memo becomes law, we may see slightly more expensive games and Internet services. Otherwise, I don’t see much else. The proposed memo really isn’t worth much.
Nonetheless, it is tempting to read into this law through the perspective of Filipino realpolitik — that the NTC is just another agency through which the administration will quell opposition and dissent. This is idle speculation, but you never know. I have to make the most of this blog while it’s free (which really isn’t since we do pay for our DSL service, and I pay WordPress for my CSS and domain). Until then, I’ll have my pitchfork ready.